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Fifth Circuit Remands ESG Rule in First ERISA Test Case Post-Chevron

In its recent decision in State of Utah v. Su, the Fifth Circuit remanded a challenge to the Department of Labor’s (DOL) environmental, social, and governance (ESG) rule for investing in defined contribution retirement plans...more

Evonik Corporation Beats 401(k) Plan Challenge with Evidence of Rigorous Fiduciary Process

A New Jersey federal district court recently granted summary judgment in defendants’ favor in an ERISA excessive fee case accusing Evonik’s 401(k) plan fiduciaries of keeping imprudent investments in the plan and of allowing...more

Fourth Circuit Affirms Aon’s Trial Victory in Investment Suit

The Fourth Circuit affirmed Aon Hewitt Investment Consulting’s trial victory in a 250,000-member class action suit alleging that Aon breached ERISA’s fiduciary duties. Aon was initially the Lowe’s 401(k) plan’s investment...more

Third Circuit Rejects Mandatory Arbitration Clause in ESOP

The Third Circuit refused to enforce a mandatory arbitration clause with a class action waiver in an ESOP, finding that the class action waiver deprived participants of statutory rights. The ESOP plan added the clause at...more

Ads Related to Health Plan Fees Raise Questions on the Next Excessive Fee Suit Targets

Is a new wave of ERISA fiduciary litigation targeting group health plan sponsors on the horizon? There have already been a few examples of health plan fee cases, such as claims challenging the billing practice between...more

Parties, Start Your Engines: Snap Removals And Defeating Incomplete Diversity

In what is known as a “snap” removal, a non-resident defendant may be able to remove a state court case to federal court based on diversity jurisdiction, despite resident defendant(s) being named in the suit. To effect a snap...more

ERISA 401(k) Performance And Fee Litigation Dismissed For Failure To Provide Comparable Benchmark

The District Court for the Southern District of Iowa recently dismissed an ERISA putative class action lawsuit challenging 401(k) performance and fees after plan participants failed to identify appropriate benchmarks in their...more

Administrative Exhaustion Is Required Even When Not Mentioned In Plan

The Eastern District of Missouri recently examined whether administrative exhaustion is a prerequisite to an ERISA suit alleging a wrongful denial of employee benefits, where the benefit plan’s language did not include an...more

U.S. Bancorp Defeats Class Certification In Challenge To Early Retirement Benefits

The District Court of Minnesota declined to certify a class of pensioners seeking to challenge their plan’s early retirement calculations. ERISA requires early retirement benefits to be actuarially equivalent to what...more

Third Circuit To Consider Class Certification Issues Percolating In ERISA Fee Litigation

The Third Circuit will review a Pennsylvania district court’s decision to certify a 60,000+ person class in an ERISA fiduciary breach lawsuit claiming mismanagement of a defined contribution plan’s investments and...more

401(k) Investment Option Challenge Heads To Ninth Circuit

Recently, in Davis v. Salesforce.com, a California district court dismissed for the second time claims alleging that the defendant 401(k) plan fiduciaries breached their ERISA fiduciary duties by retaining overpriced and...more

California District Court Again Dismisses ERISA Lawsuit Challenging 401(k) Plan’s Fees

The Northern District of California dismissed with prejudice a lawsuit alleging a 401(k) plan’s sponsor and fiduciaries included unreasonably expensive funds in the plan’s investment lineup. The court previously dismissed...more

ERISA Claims: How Can Benefits Be An Employer’s Burden? [Audio]

Employers should develop and implement the most compliant and risk adverse benefits plans, but the plaintiff’s bar will still search for loopholes. Investment fees and loss, COBRA litigation and healthcare claims are only a...more

Failure To Identify Specific Viable Alternative Action Dooms Stock Drop Claim

The Ninth Circuit recently affirmed the dismissal of an ERISA employer-stock drop putative class action, holding that the plaintiff’s failure to identify specific, viable alternative actions that plan fiduciaries should have...more

Ninth Circuit: ERISA Does Not Bar Forum Selection Clauses

Aligning itself with other circuit courts that have ruled on the issue, the Ninth Circuit recently held that ERISA does not bar forum selection clauses in benefit plans. The background of the case and the Ninth Circuit’s...more

Second Circuit: Investment Advisor Not Covered By Plaintiff’s Employment Arbitration Agreement

The U.S. Court of Appeals for the Second Circuit recently concluded that investment advisor Ruane Cunniff & Goldfarb must face a proposed class action under ERISA Section 502(a)(2) for breach of fiduciary duty relating to its...more

U.S. Supreme Court: Courts Can Review Railroad Retirement Board’s Refusal To Reopen Claims

In a 5-4 decision, the U.S. Supreme Court has ruled that federal courts can review decisions by the U.S. Railroad Retirement Board denying claimants’ requests to reopen prior benefits denials. Salinas v. U.S. R.R. Ret. Bd.,...more

BlackRock 401(k) Plan Class Action Headed For Trial

A class action alleging that BlackRock entities favored their own proprietary funds when selecting investment options for BlackRock’s 401(k) Plan is headed for trial after Judge Haywood S. Gilliam, Jr. denied both parties’...more

U.S. Supreme Court: State Law Regulating Pharmacy Benefit Managers Is Not Preempted By ERISA

An Arkansas law regulating pharmacy benefit managers’ (PBMs) generic drug reimbursement rates, and affecting the cost of prescription drugs provided under ERISA-governed benefit plans and the administration of those plans, is...more

U.S. Supreme Court To Take On Affordable Care Act … Again

This term, the U.S. Supreme Court returns to a challenge to the Affordable Care Act (ACA). In the consolidated cases of California v. Texas (No. 19-840) and Texas v. California (No. 19-1019), the Court will consider whether a...more

Supreme Court To Consider Appealability Of Railroad Retirement Board Decisions

The U.S. Supreme Court will hear the second of several ERISA disputes this term, the first issue we discussed as the term began, October 5, 2020. Monday, November 2, 2020, the Justices will consider whether the Railroad...more

U.S. Supreme Court To Hear ERISA Preemption Dispute

On October 6, 2020, the U.S. Supreme Court will hear argument on ERISA’s preemptive effect on a state law regulating pharmacy benefit managers’ (PBMs) generic drug reimbursement rates in Rutledge v. Pharmaceutical Care...more

COBRA Notice Litigation: Cases Are Mushrooming And Settlements Are, Too

Imagine something as simple as a COBRA notice that complies with law, but is not identical to the Department of Labor’s (DOL) model notice, leading to six- or seven-figure class action litigation settlements? Companies in...more

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